A Study on Managing Working Capital in Indian Real Estate Projects

Abstract

This Paper investigates working capital management in the Indian real estate sector using both qualitative and quantitative research methods. It analyzes five leading Indian real estate companies DLF, Godrej Properties, Macrotech Developers, Oberoi Realty, and Prestige Estates Projects over the period 2015–2024. Financial ratio analysis, including current ratio, quick ratio, cash conversion cycle, and debt-to-equity ratio, is employed to evaluate liquidity, profitability, and operational efficiency. The findings highlight significant variations in performance across companies, influenced by market cycles and macroeconomic conditions. Expert interviews reveal key challenges such as inadequate cash flow forecasting, inefficient inventory management, slow receivables collection, and overexpansion. The study identifies consistent negative impacts of working capital shortages on profitability, project timelines, and company reputation. It proposes actionable strategies for optimizing working capital management, emphasizing proactive planning, efficient resource allocation, and adaptability to market changes. The research acknowledges limitations related to sample size and reliance on qualitative data, suggesting future studies to broaden the scope and enhance generalizability.